AUD/NZD bounces off 50-DMA, stay long for 1.10
Kiwi extends weakness after weaker than expected trade balance data and NZIER’s recommendations of little need for an RBNZ rate rise.
On the other side, firmer oil, copper and gold prices also lifted the sentiment around the resource-linked AUD.
Technical studies have turned bullish, we see rollover of stochs from oversold levels.
The pair has bounced off 50-DMA and is on track to test major trendline resistance at 1.10 levels.
Violation a 1.10 could then see 1.1155 (major trendline resistance).
Support levels - 1.0899 (5-DMA), 1.0869 (50-DMA), 1.0848 (38.2% Fib retracement of 1.0370 to 1.1143 rally)
Resistance levels - 1.10 (converged weekly 5-SMA, 20-DMA and trendline), 1.1155 (major trendline resistance)
Recommendation: Good to go long on dips around 1.0950/55, SL: 1.09, TP: 1.10/ 1.1045/ 1.1090
On the other side, firmer oil, copper and gold prices also lifted the sentiment around the resource-linked AUD.
Technical studies have turned bullish, we see rollover of stochs from oversold levels.
The pair has bounced off 50-DMA and is on track to test major trendline resistance at 1.10 levels.
Violation a 1.10 could then see 1.1155 (major trendline resistance).
Support levels - 1.0899 (5-DMA), 1.0869 (50-DMA), 1.0848 (38.2% Fib retracement of 1.0370 to 1.1143 rally)
Resistance levels - 1.10 (converged weekly 5-SMA, 20-DMA and trendline), 1.1155 (major trendline resistance)
Recommendation: Good to go long on dips around 1.0950/55, SL: 1.09, TP: 1.10/ 1.1045/ 1.1090